Adoption of efficient consumer response: the issue of mutuality

The adoption of efficient consumer response (ECR) has been slow in many regions, despite its many potential benefits to supply chain participants through reduction of inventory level and operating costs. There has not been any well‐developed theory that can explain this slow uptake. Argues that the inherent characteristics of ECR have actually created barriers to its own adoption. As an inter‐organisational system (IOS), ECR adoption requires co‐operation and trust between trading partners, which are unlikely to happen unless costs, benefits and risks of ECR implementation can be mutually shared. Shows, using a case study conducted within one supply chain, that an unequal distribution of costs, benefits and risks among manufacturer, distributor and retailer is inherent in the implementation of cross‐docking, which typifies the overall ECR program. The findings of this study lead to a new direction in understanding the barriers to adoption of ECR and IOS in general.